Capitol sees ‘win-win’ deal in Geonzon St. case
The Cebu provincial government is hopeful that a “win-win” solution over the property dispute between two major real estate developers in the area near Cebu I.T. Park will be finalized by next week.
Cebu Vice Gov. Agnes Magpale hinted that a potential agreement is already in place which will allow the demolition of the perimeter wall along Geonzon Street and connect the Ayala-owned I.T. Park and new Business Process Outsourcing (BPO) complex of Filinvest Land Inc.
“The wall? It’s okay so long as all parties can comply to the conditions that they have set for each other,” she told reporters after a meeting with Cebu Property Development Ventures Corp. (CPVDC) officials at the Capitol yesterday.
“I assure you that this will benefit the Cebuanos and the city because it will even help solve the traffic in Ban-Tal (Banilad-Talamban corridor),” she said.
Access
Magpale said she is positive that a mutually-beneficial agreement can be finalized next week when Capitol officials and representatives from the two firms sit down for the first time.
“Finally, we will have one meeting sometime next week where the three of us will be there. We are nearing a win-win solution on the case. That is all I can tell you,” Magpale said.
Aside from Magpale, Cebu Gov. Hilario Davide III and Provincial Board (PB) Member Grecilda “Gigi” Sanchez-Zaballero attended the meeting. Zaballero chairs the committee on provincial and municipal properties.
The province has been mediating between Filinvest and CPVDC to resolve the dispute over access of Geonzon Street.
The Capitol partnered with Filinvest for the P6 billion Cebu Cyberzone project during the administration of then Cebu governor Gwendolyn Garcia by virtue of a build-transfer-operate agreement.
The province is one of the stakeholders of the Ayala-owned I.T. Park which sits on land formerly owned by the province.
Revenue
Magpale said they are also considering revisions to the Capitol and Filinvest’s agreement for the BPO project.
“We will submit the results of the contract review to the governor.” The provincial government has been earning from the deal since the BPO project broke ground in 2012.
Based on records from the province’s treasury, the province received P7.534 million in rent from Filinvest in monthly rent in 2013 and P2.935 million from January to May this year.
Once the complex starts operations, Filinvest will also have to return two percent of its monthly revenue to Capitol or P500,000, whichever is higher.
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